Storbanken is the first to raise after the interest rate increase from Norges Bank last week.
Mortgages have become much more expensive in recent years. Photo: Vidar Ruud / NTBPublished:
Less than 30 minutes ago
Updated just now
As usual, the country’s banks follow the central bank when the key interest rate is adjusted.
DNB raises the interest rate on mortgages by up to 0.25 percentage points.
Storbanken also sets the deposit rate for all savings accounts by at least 0.25 percentage points, according to the message from DNB. The new interest rates apply from 20 February 2024 for existing loans and deposits.
Read on E24+
They are heading for even more expensive loans in 2024
Norges Bank surprised the market and economists when it struck with an interest rate hike of 0.25 percentage points last week. The key interest rate in Norway is now at 4.5 per cent, the highest level since 2008.
The banks must notify of interest rate increases 8 weeks before they come into effect. Today’s changes to mortgages will therefore not take effect until mid-February.
An interest rate cut in 2024?
When the interest rate was set last week, Norges Bank pointed out that price inflation is still too high.
The central bank also pointed out that the krone has weakened further and that there are prospects for wage growth to remain high. At the same time, they recognized that the economy is cooling down.
Norges Bank estimates that the first interest rate cut will not come until autumn next year. Only one cut was signaled in 2024.
– I was surprised. This is an icy Christmas present from Norges Bank. The only thing you can perhaps be happy about in this report for ordinary Norwegian households is that the interest rate will not go up further now, said Kari Due-Andresen, chief economist at Akershus Eiendom, after the interest rate announcement.
The market has much greater faith in Norwegian interest rate cuts.
Despite the signals from Norges Bank, a first cut is being priced in already in the spring. It is also priced in that the interest rate should be reduced in total by as much as 1.5 percentage points during 2024, according to Handelsbanken. The brokerage house itself believes that there will be something in the middle between the central bank and the market.
– We expect three interest rate cuts next year, said senior economist Sara Midtgaard at Handelsbanken to E24 on Sunday.
Get today’s most important economic news here!
also read
BN Bank believes that Norges Bank is missing the mark – dropping interest rate hikes
also read
Moving towards a new interest rate normal: – The time for free money is over
also read
Waiting for “a gloomy spring” in the housing market
2023-12-19 10:15:07
#DNB #sets #mortgage #interest #rate
